TORONTO, March 02, 2018 (GLOBE NEWSWIRE) -- Brompton Lifeco Split Corp. (the “Company”) (TSX:LCS) (TSX:LCS.PR.A) is pleased to announce that the board of directors has approved an extension of the maturity date of the Class A and Preferred shares of the Company for an additional 5 year term to April 29, 2024. The reset preferred share dividend rate for the extended term will be announced at least 60 days prior to the original April 29, 2019 maturity date and will be based on market yields for preferred shares with similar terms at that time.
The term extension allows Class A shareholders to continue their investment in Canadian life insurance companies while offering an attractive distribution rate of 13% (based on the February 28, 2018 closing price) and the opportunity for capital appreciation. Over the last 5 years to January 31, 2018, the Class A share has delivered a 29.1% per annum return, which outperformed the S&P/TSX Capped Financials Index by 15.5% per annum and outperformed the S&P/TSX Composite Index by 21.3% per annum.(1) Since inception to January 31, 2018, Class A shareholders have received cash distributions of $5.13. Class A shareholders have the option to reinvest their cash distributions in a dividend reinvestment plan which is commission free to participants.
The term extension offers Preferred shareholders the opportunity to enjoy preferential cash dividends until April 29, 2024. Over the last 5 years to January 31, 2018, the Preferred share has delivered a 5.8% per annum return, outperforming the S&P/TSX Preferred Share Index by 4.2% per annum with less volatility.(1)
Brompton Lifeco Split Corp. invests in a portfolio of common shares of Canada’s four largest publicly-listed life insurance companies, on an approximately equal weight basis: Great-West Lifeco Inc., Industrial Alliance Insurance and Financial Services Inc., Manulife Financial Corporation and Sun Life Financial Inc.
About Brompton Funds
Brompton Funds, a division of Brompton Group which was founded in 2000, is an experienced investment fund manager with approximately $2 billion in assets under management. Brompton’s investment solutions include TSX traded funds, mutual funds, and flow-through limited partnerships. For further information, please contact your investment advisor, call Brompton’s investor relations line at 416-642-6000 (toll-free at 1-866-642-6001), email info@bromptongroup.com or visit our website at www.bromptongroup.com.
1) See Standard Performance Data table below. Source: Thomson Reuters, as at January 31, 2018.
| Brompton Lifeco Split Corp. Performance to January 31, 2018 | 1 Yr | 3 Yr | 5 Yr | 10 Yr | Incep. (04/18/07) | |||||
| Class A Shares (TSX:LCS) | 5.9 | % | 21.5 | % | 29.1 | % | 1.1 | % | 0.3 | % |
| S&P TSX Capped Financials Index | 11.6 | % | 14.2 | % | 13.6 | % | 8.8 | % | 7.3 | % |
| S&P/TSX Composite Index | 6.7 | % | 5.9 | % | 7.8 | % | 5.0 | % | 4.5 | % |
| Preferred Shares (TSX:LCS.PR.A) | 5.9 | % | 5.9 | % | 5.8 | % | 5.6 | % | 5.5 | % |
| S&P/TSX Preferred Share Index | 10.9 | % | 3.2 | % | 1.6 | % | 3.3 | % | 2.4 | % |
You will usually pay brokerage fees to your dealer if you purchase or sell shares of the investment funds on the Toronto Stock Exchange or other alternative Canadian trading system (an “exchange”). If the shares are purchased or sold on an exchange, investors may pay more than the current net asset value when buying shares of the investment fund and may receive less than the current net asset value when selling them.
There are ongoing fees and expenses associated with owning shares of an investment fund. An investment fund must prepare disclosure documents that contain key information about the company. You can find more detailed information about the company in the public filings available at www.sedar.com. The indicated rates of return are the historical annual compounded total returns including changes in share value and reinvestment of all distributions and do not take into account certain fees such as redemption costs or income taxes payable by any securityholder that would have reduced returns. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.
Certain statements contained in this document constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this document and to other matters identified in public filings relating to the company, to the future outlook of the company and anticipated events or results and may include statements regarding the future financial performance of the company. In some cases, forward-looking information can be identified by terms such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no obligation to update or revise them to reflect new events or circumstances.